Economics B A-Level
Asymmetric information and market failure
What Asymmetric information and market failure means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Asymmetric information and market failure
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Read the wording for your board, then hide it and explain Asymmetric information and market failure in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
A situation where one party, usually the seller, has more or better information than the buyer, which can lead to unsafe products, misleading claims and unfair contract terms.
Topics that use Asymmetric information and market failure
- Business regulation (Pearson Edexcel A-Level)
Related terms
- Consumer protection
- Consumer protection legislation and standards
- Franchising
- Market power
- Mergers and takeovers
- Natural monopoly
- Anti-competitive practices
- Business costs
Using Asymmetric information and market failure in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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